Trump’s Pass-Through Proposal: New Figures on High-End Tax Cuts

Source: Chuck Marr, Center on Budget and Policy Priorities blog, May 15, 2017

Millionaires would get average tax cuts of $114,000 in 2018 from a plan — very similar to what President Trump has proposed — to let the owners of “pass-through” such as partnerships, S corporations, and sole proprietorships pay only a maximum 15 percent rate on their business income, according to new estimates from the Tax Policy Center (TPC).

TPC estimates this proposal would cost some $1.9 trillion in lost federal revenue over the next decade — from the rate cut itself as well as the new tax avoidance opportunities that it would open for high-income individuals…..